ForexMinute.com — With volumes drying up, and traders taking a break, Litecoin market is absolutely deserted at press time, while awaiting a much-needed breakout. The impact genuinely seems to be borrowed from Bitcoin’s price action, which is itself consolidating sideways within a strict trading parameter. Litecoin, likewise, is forming a congestion pattern as of this moment, where no valuable trades are emerging in sight. Let’s check it further:
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in a near-term bias conflict, as the price is literally stuck between a narrowed Bollinger Band. However, for long-term, bears still have the upper hand, consider the price which is still below its 50, 100 and 200H SMAs. The 4H RSI is bouncing between 40 and 46, while the MACD indicator is maintaining its negative bias.
At this point of time, we are currently looking for some action towards the current in-term support and resistance lines — at 3.226 and 4.268 fiat, respectively. As there comes some weak eruption or trickle, we would be placing our entries accordingly. In case of an upside correction, we would be looking for price to cross above 4.268 to validate a medium-term upside target near 4.581. On this trade, our stop loss will be near 4.115 fiat to ensure a perfect exit point in case the upside correction loses momentum.
Conversely, a run towards the in-term support line 3.226 is quite possible as well. In case the price hoes below it, we would be making a short entry towards our primary downside target near 2.680 fiat, while keeping our stop loss at 3.361 fiat.